Offset Mortgage

Are Offset Mortgages Suitable For You?

Offset mortgages generally work best for people with a reasonable amount of savings or people with larger amount of money like lump sum bonuses or self employed. Without money routinely going in to the offset mortgage account there will be little benefit to the mortgage borrower.
If you are unsure about whether an offset mortgage is the right choice for you, consult an expert independent mortgage advisor. The advisor will take into account not only your savings but your future, how you spend your income and your lifestyle. Offset mortgage interest rates are rarely the best on the mortgage market so a discounted or tracker mortgage may be more suitable to your requirements if you don’t have a reasonable amount of money to offset.

Offset Mortgage Overpayments

If overpayments are made to your offset mortgage, not only do you save money by paying less interest but you are building up a cash reserve to which you can borrow from at a later date. Effectively this means that you can get a cash loan from your overpayments at the same rate as the mortgage interest which is lower than general money loans.